(Adds details from the company’s proxy filing in paragraph 6)
May 6 (Reuters) – Hedge fund Shah Capital on Monday urged Novavax shareholders to vote against the re-election of three directors and proposals related to executive compensation, weeks after pushing for a board shakeup at the COVID-19 vaccine maker.
Shah Capital, the biotech’s third-largest shareholder with a near 7.5% stake, reiterated that the company was “undervalued and continues to suffer from poor profitability”.
Novavax last year had raised doubts about its ability to remain in business, hurt by manufacturing snags and regulatory hurdles that delayed the entry of its protein-based vaccine to the market.
Last month, Shah Capital had expressed concerns over mismanagement at the Maryland-based biotech and urged it to adopt a marketing strategy to target consumers who are hesitant to receive mRNA vaccines.
Shah Capital had previously said it plans to put forward two of its own candidates for appointment to Novavax’s board, but did not formally submit any nominations.
Novavax said in a proxy filing last week that it had not received any valid nominations from stockholders for its 2024 annual shareholder meeting, scheduled to take place on June 13.
The hedge fund said on Monday that it plans to vote against directors Richard Douglas, Margaret McGlynn and David Mott at Novavax’s shareholder meeting in June.
“We believe that fresh perspectives are desperately needed in the boardroom to steer Novavax towards sustainable profitable growth,” it said in a statement.
McGlynn and Mott have served on Novavax’s board since 2020 and Douglas since 2010.
Novavax said it welcomes the perspectives of its shareholders and values their input.
“We believe we have the right board in place to oversee Novavax’s strategy,” the company said in its response.
Shah Capital also plans to vote against three other proposals, including one related to the compensation of some of Novavax’s executives. (Reporting by Bhanvi Satija in Bengaluru; Editing by Shilpi Majumdar)
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Published: 06 May 2024, 11:19 PM IST